Upon completion of the above studies, all subjects (diabetics, non diabetic metabolic syndrome) will be started on pioglitazone at a dose of 15 mg day and continued for 24 weeks. Subjects will receive dietary counseling prior to the initiation of pioglitazone therapy and be asked to consume a standard ADA, weight maintaining diet throughout the study. Patients will be seen for follow up every 2 weeks. On each follow up visit interim medical history, blood pressure, pulse, weight and fasting plasma glucose concentration will be determined. Every month we will measure HbA1c, plasma lipids, liver function tests, adipocytokines, and inflammatory markers as described earlier. After 4 months of pioglitazone treatment subjects will have a repeat: (i) measurement of fat and lean body mass by DXA, (ii) OGTT with vastus lateralis biopsy.